Net profit rose to $19.3
million, or 58.6 cents per share, in the 12 months ended
June 30, from $13.9 million, or 42.5 cents a year earlier,
the Wellington-based company said in a statement. Trading
revenue climbed 14 percent to $698.2 million.

"A feature
of this year has been the concurrent strong operating
performance from all of the trading companies; car
dealerships, heavy trucks, and tractors," chairman Jim
Gibbons said. "However, there are increasing signs that the
favourable conditions are easing."

Government data this
month showed retail spending on motor vehicles and parts
showed the biggest quarterly volume increase in the three
months ended June 30, with Motor Trade Industry Association
figures showing sales of new passenger and commercial
vehicles tallied 62,200 in the first half of this
year.

Colonial said new passenger vehicle registrations
rose 11 percent in the first six months of the year from the
same period in 2013, while light commercial registrations up
21 percent and heavy commercials up 20 percent.

The board
declared a final dividend of 22 cents per share, payable on
Oct. 20 with an Oct. 10 record date. That takes the total
annual payment to 35 cents per share, up from 30 cents in
2013.

The shares were unchanged at $5.47, and have climbed
19 percent this year.

In June, Colonial announced the
purchase of Jeff Gray BMW, which settled yesterday, adding
four BMW dealerships in Christchurch, Wellington, Palmerston
North and
Hastings.

The Wellington-based BusinessDesk team led by former Bloomberg Asian top editor Jonathan Underhill and Qantas Award-winning journalist and commentator Pattrick Smellie provides a daily news feed for a serious business audience.

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